MENA announced an operations update for Lagia oil field development in Egypt.
Drilling rig negotiations
MENA is negotiating an offer from the Egyptian Drilling Company (EDC) to contract one of two rigs to commence operations on its Lagia oil field development in Egypt. The initial six well program consists of working over two existing wells, the drilling of two development wells and drilling a further two appraisal wells. The contracted rig is expected to be mobilized to site in January or February 2012.
MENA has finalized all other work programs and service contracts to commence work over and drilling operations. The existing Lagia 6 and 7 wells are expected to be completed with a subsurface pump whereafter two development wells and two appraisal wells are planned to be drilled. It is expected that the development wells will be completed with thermal casing in order to facilitate steam injection as part of a cyclic steam soak pilot project. Installation of temporary production facilities has been contracted, and is expected to begin in December.
In preparation for the workovers, the Lagia 7 well was opened and crude oil samples were taken from surface. The produced oil is expected to be transported by road tanker to nearby production facilities to either of the Suez Oil Company (SUCO) or the General Petroleum Company (GPC). First routine production is expected in the first quarter of 2012.
Lagia Oil Field
MENA is the sole owner of the Lagia Development Lease covering a 32 square kilometer block of land located on the Sinai Peninsula, directly adjacent to the Gulf of Suez. Within the lease, four wells have been drilled between the years 1949 to 2000 that have identified the Lagia oil field. Three producing oil fields, Sudr, Matarma and Asl, are located as close as 26 km to the north of the Lagia oil field.
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